Increasing Consumer Awareness for Vehicle Safety Features to Fuel Growth of Airbag Market
Airbag systems have become a necessity these days with the increasing number of vehicles on the road, which indirectly increases the number of accidents occurring every day. A car equipped with airbags will safeguard us, always, in the event of an unexpected crash. Various improvements in vehicles passive safety systems, and a growing preference for a safer, more efficient, and convenient driving experience, are driving global airbag market. Airbags are primarily designed to avert head, neck, chest, and face injuries that you would otherwise suffer in its absence. The airbag market is also driven by rising passenger vehicle production and increasing consumer awareness of vehicle safety. According to World Health Organization, nearly 1.25 million people die every year in road accidents. As a result, it raises the demand for vehicle safety.
The growing demand for customised curtain airbags, and the increased use of airbag safety systems in all types of vehicles, are driving end-user demand for automotive airbags. The governments of various countries have recognised the importance of people's safety, and have enacted and implemented stringent laws and regulations to ensure driver and passengers safety, and security. For example, the India government has mandated that all cars will soon need to have 6 airbags. After implementation of mandatory fitment of two airbags for driver and passengers on the front seats across all models of cars, including the cheapest ones, the transport ministry will now expedite the mandatory installation of four more airbags for the rear seat passengers. According to the road accident data published by the National Crime Records Bureau, 17538 car occupants died in road crashes, which accounts to around 13% of the total road fatalities in the country.
Moreover, various automobile manufacturers are now offering vehicles with side airbags (SABs) to minimise the chances of chest injuries in side-impact collisions. For instance, Autoliv Inc. launched a new front-centre airbag in 2019, mounted between the driver and the front-seat passenger, that reduces the risk of head, shoulder, and chest trauma and saves lives in side-impact crashes. Thus, the adoption of advanced safety systems (airbags) and increased consumer awareness of safety features are expected to drive airbag market over the forecast period. Enhanced technological advancements in vehicle airbags, such as pedestrian airbags, rear-seat airbags, external airbags, and roof airbags, are expected to drive airbag market expansion over the forecast period. The key market players are constantly carrying out research and development activities to introduce new and innovative products to the market. The government's safety regulations are also assisting key players in the mass production of vehicle airbags. For the launch of new products, the government also provides tax rebates and subsidies to the companies.
Increased Demand for Airbag in Passenger Vehicles to Drive Market Growth
Passenger vehicle is expected to be the fastest-growing segment over the forecast period. Growth in passenger car sales and production volumes in developing countries is expected to drive market growth. Globally, the number of passenger vehicles manufactured each year surpasses the number of commercial vehicles. Thus, the total number of airbags installed in sedans, utility vehicles, and hatchback vehicles surpasses the total number of airbags installed in commercial vehicles. On the other hand, the commercial vehicle segment is also growing in the airbag market. According to the Federal Motor Carrier Safety Administration (FMCSA), 10.45 million heavy-duty commercial vehicle crashes occurred in the United States in 2017. The increasing number of commercial vehicle accidents has prompted vehicle manufacturers to install vehicle safety systems to improve occupant safety. This factor is likely to fuel the growth of the commercial vehicle segment.
Stringent Government Regulations for Safety Standards to Drive Market Growth in Asia Pacific
Asia Pacific is expected to grow at the fastest rate throughout the forecast period. The implementation of stringent safety standards in Asia Pacific countries such as China, India, Malaysia, and Thailand are expected to enhance the market for vehicle airbags market. The presence of many vehicle manufacturers as well as major airbag producers across Asia Pacific has led to the region’s major share of the global vehicle airbag market. For instance, in terms of vehicle production, Asia Pacific accounted for more than 50% of total global vehicle production in 2019. Most airbags are installed during vehicle assembly. China, and India are Asia's largest passenger car manufacturing hubs, making them one of the most profitable markets for vehicle airbags.
According to the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in India increased by 11.4% in 2021, with a total output of 22,652,108 units. Automobile manufacturers are increasing the deployment of automobile airbags in India in addition to expanding passenger car sales and increasing government initiatives to improve driver and passenger safety. The rapid growth of market in North America can be ascribed to the various safety regulations taken by the government agencies like National Highway Traffic Safety Administration (NHTSA). According to the Intermodal Surface Transportation Efficiency Act, it is mandatory to have airbags in light-duty commercial vehicles, and passenger cars in the United States. The developed economy of the United States is generating opportunities for the vehicle airbag market to grow. In addition, the technological advancements enable key players in North America to produce and launch new airbag products in the market.
Global Airbag Market: Competitive Landscape
In January 2021, Daicel Corporation announced the launch of a new production site in India to fulfil the country's growing demand for automobile airbags. On the other hand, in November 2020, INVISTA announced the expansion of its nylon polymer manufacturing capacity in China to 190,000 tonnes per year, with an additional 40,000 tonnes per year capacity to meet the country's growing demand. The demand for nylon polymers in China is being driven by increased demand for engineering polymers used in automotive, electrical, and engineering applications, such as light-weighting, powertrain parts optimisation, electrification, and automation.
Few of the players in the airbag market include Hyundai Mobis Co Ltd., Autoliv Inc., Rane Group, Daicel Corporation, Joyson Safety Systems, ZF Friedrichshafen AG, Kolon Industries Inc., Toyoda Gosei, Toray Industries, and Neaton Auto Products Manufacturing.
Global Airbag Market is Segmented as Below:
By Vehicle Type
By Sales Channel
Key Elements Included In The Study: Global Airbag Market
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